Company: Deutsche Telekom AG
Computations: in millions EUROS
Quick and Current Liquidity Ratios
Quick Ratio 86116 – 13218 / 34742 = 2.09
Current Ratio 86116 / 34742 = 2.47
DuPont Ratio 690/15477 * 15477/86116 * 86116/59328 = .0116
Profit Margin 20423 / 46944 = .4350
Asset Utilization 4269 / 100084 = .042
Financial Leverage (3.2) / 8.3 = (.3855)
Unlike manufacturing and retail there is more of a need in the telecommunications industry and the services offered than a clothing department such as Macy’s or a car manufacture such as Toyota. Especially since more and more of devices such as cell phones and televisions are in every home. This is shown in the financial analysis of these particular companies.
Deutsche Telekom AG is one of the world’s leading telecommunications. They have a strong international presence in about fifty countries and three-quarters of sales come from Europe. They are based out of Germany and have about 247,000 employees. In America it is associated as T-Mobile but internationally company has over 140 million subscribers to wireless phone service. Deutsch Telekom is Germany’s major landline telephone carrier for domestic and international services under the T moniker. Keeping the trend Deutsch Telekom also is a leading internet service provider with more than 25 million broadband subscribers along with other data and internet television.
With a company this large it is necessary that a good ethical accounting firm handle its financials. These firms are given standards that are from the International Accounting Standards Board. In the United States it is called the Financial Accounting Standards Board. Since there are different measurement conventions between the FASB and the ISAB; it is easier for unethical accounting behavior because of lesser rules in place internationally. This being true, more recently the ISAB and FASB are working more closely to align their presentation requirements.
Along with the presentation...